Bayer shares slide after latest Roundup cancer ruling

Shares in pharmaceutical company Bayer fell more than 12 percent on Wednesday after a second U.S. jury ruled its Roundup weed killer caused cancer.

Tuesday's unanimous jury decision in San Francisco federal court was not a finding of Bayer's liability for the cancer of plaintiff Edwin Hardeman. Liability and damages will be decided by the same jury in a second trial phase beginning on Wednesday.

Bayer, which denies allegations that glyphosate or Roundup cause cancer, said it was disappointed with the jury's initial decision. Bayer acquired Monsanto, the longtime maker of Roundup, for $63 billion last year.

"This looks like 2-0 plaintiffs, and clearly not helpful for the overall payout calculus and resolution of the litigation," said Bernstein analyst Gunther Zechmann.

Glyphosate is the world's most widely used weed killer. Monsanto's Roundup was the first glyphosate-based weed killer but is no longer patent-protected and many other versions are now available. Bayer does not provide sales figures for the product.

"We are confident the evidence in phase two will show that Monsanto's conduct has been appropriate and the company should not be liable for Mr. Hardeman's cancer," the company said.

The case was only the second of some 11,200 Roundup lawsuits to go to trial in the United States. Another California man was awarded $289 million in August after a state court jury found Roundup caused his cancer. That award was later reduced to $78 million and is on appeal.

Wear gloves when working in the garden, and always wash up before heading inside. Additionally, avoid backyard burning of household trash.

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Your big, comfy couch

Your favorite sofa could be killing you, and not just because it lures you away from activity: Many sofas, mattresses, and other cushioned furniture are treated with TDCIPP, a flame retardant known to cause cancer (i.e., a carcinogen). TDCIPP was used so frequently prior to 2013 that a study out of Duke University found it in the blood of everyone they tested. It's also one of ten chemicals most frequently found in household dust, according to this study.

Cadmium is a carcinogenic byproduct of cigarette smoke. If you smoke in your house, cadmium and other cigarette smoke by-products may be lurking, especially on soft surfaces such as curtains and carpet—even long after the smell of smoke is gone. There's even such a thing as third-hand smoke and it's resistant to even the strongest cleaning products. Here's where you can learn more about third-hand smoke and its dangers.

Chromium (VI) is a known carcinogen found in tanned leather, wood furniture, certain dyes and pigments used in textiles, and cement. To give you an idea of the prevalence of chromium VI, one study out of Denmark found that almost half of imported leather shoes and sandals contained some level of the carcinogen.

What can you do?

As with TCIPP, pay attention to labeling. And don't be shy about asking questions of your furniture salesperson.

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Your old fridge

According to cancer.org, carcinogenic PCBs can turn up in old appliances, fluorescent lighting fixtures, and electrical transformers. While no longer commercially produced in the United States, PCBs are still manufactured and used in developing countries, and of all PCBs ever produced, up to 70 percent are still in the environment. Diet is another major source of exposure, according to Gushée.

What can you do?

Get rid of those old appliances and fluorescent light fixtures. Pay attention to advisories regarding PCB-contaminated fish and fish-eating wildlife.

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Your cleaning products

Formaldehyde is a known carcinogen found at home in food, cosmetics, a variety of cleaning products (such as dishwashing liquids, fabric softeners, and carpet cleaners), paint, foam insulation, and on permanent press fabrics. In addition, you can be exposed by breathing smoke from gas cookers and open fireplaces.

The dry-cleaning chemical perchloroethylene (tetrachloroethylene or "perc") is a carcinogen that can build up wherever you store your dry-cleaned clothes. It's also found in spot removers, shoe polish, and wood cleaners.

Phthalates are suspected of causing cancer and may adversely affect human reproduction or development. They're found in vinyl flooring, shower curtains, synthetic leather, miniblinds, wallpaper, and anything made with PVC vinyl. They're also found in food packaged in plastic.

Everyone knows arsenic is poisonous, but in smaller doses, it's also carcinogenic. Yet you can find it in foods you probably eat regularly—including chicken, rice, and certain fruit juices, as well as in degreasing products, dyes, furniture wax, glues, lubricants, nylon, and paints.

Asbestos has been out of favor for decades, thankfully, but you can still find it in the insulation of older homes. As the insulation eventually deteriorates, asbestos fibers become airborne. Since asbestos fibers stick to clothing and shoes, workers exposed to asbestos on the job can also bring asbestos into their homes.

Styrene is a known carcinogen widely used in the manufacturing of polystyrene plastics, which can be made into foam and rigid plastic products such as cups, plates, trays, utensils, packaging, and packing peanuts. Styrene may leach into your hot coffee or soup if you're using styrofoam containers. It's also present in cigarette smoke and in all of these home maintenance, automotive, and crafting products. What can you do? Avoid using styrofoam to hold hot foods and liquids, and read your product labels carefully. Find out the 12 foods you should never microwave.

Pantry pests and other creepy crawlies can carry disease. But if you eliminate them using chemical pesticides, you're increasing your risk of cancer. Chemical pesticides include those that you use on your pets, such as flea collars and tick-repellant.

Radon is formed naturally from the radioactive decay of uranium in rocks and soil. It raises the risk of lung cancer—especially if you also smoke, says Ashley Sumrall, MD, FACP, a Charlotte-based oncologist. If you live in an area where the amount of uranium and radium in rocks is high, you can be exposed to radon through cracks in your foundation. You can also be exposed to radon if you have a granite countertops.

Under pressure

"(It) is now under pressure to deliver and trying to avoid becoming a target for activist or strategic buyers."

Activist investor Elliott already holds a stake of less than 3 percent in Bayer, Reuters disclosed last year.

Brokerage Warburg lowered its recommendation to "Hold" from "Buy," arguing that the with the renewed setback upcoming glyphosate court cases would remain a drag on the share price.

Bayer had claimed that jury was overly influenced by plaintiffs' lawyers allegations of corporate misconduct and did not focus on the science.

U.S. District Judge Vince Chhabria called such evidence "a distraction" from the scientific question of whether glyphosate causes cancer. He split the Hardeman case into two phases: one to decide causation, the other to determine Bayer's potential liability and damages.

Under Chhabria's order, the second phase would only take place if the jury found Roundup to be a substantial factor in causing Hardeman's non-Hodgkin's lymphoma. The jury found that it was on Tuesday.

Union Investment fund manager Markus Manns cautioned that it was too early to read anything into individual rulings in courts of first instance.

"What will be important for Bayer is the outcome of the appeals hearings," he told Reuters, adding that Bayer should not yet engage in settlement talks.

Chhabria has scheduled another bellwether trial for May and a third trial is likely to take place this year. All three cases will be split into causation and liability phases.

The U.S. Environmental Protection Agency, the European Chemicals Agency and other regulators have found that glyphosate is not likely carcinogenic to humans. But the World Health Organization's cancer arm in 2015 reached a different conclusion, classifying glyphosate as "probably carcinogenic to humans." ($1 = 0.8811 euros)

(Reporting by Jim Christie in San Francisco; Additional reporting by Tina Bellon in New York, Patricia Gugau in Frankfurt Writing by Tina Bellon and Arno Schuetze Editing by Bill Berkrot and Keith Weir)